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Journal of Business Ethics
Published in: Journal of Business Ethics 3/2021

Open Access 17-06-2019 | Original Paper

Drivers and Inhibitors of Internet Privacy Concern: A Multidimensional Development Theory Perspective

Authors: Weiyin Hong, Frank K. Y. Chan, James Y. L. Thong

Published in: Journal of Business Ethics | Issue 3/2021

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Abstract

This paper investigates the drivers and inhibitors of Internet privacy concern. Applying the Multidimensional Development Theory to the online environment, we identify the important factors under four dimensions—i.e., environmental, individual, information management, and interaction management. We tested our model using data from an online survey of 2417 individuals in Hong Kong. The results show that the factors under all four dimensions are significant in the formation of Internet privacy concern. Specifically, familiarity with government legislation, Internet knowledge, benefit of information disclosure, privacy protection, and social presence reduce Internet privacy concern, while individuals’ previous privacy invasion experience, risk avoidance personality, and sensitivity of information requested by websites increase Internet privacy concern. We conducted an analysis of unobserved heterogeneity to confirm the significance of these factors. A follow-up moderation analysis shows that the individual factors (i.e., previous privacy invasion experience, risk avoidance personality, and Internet knowledge) moderate the effects of the information management factor (i.e., information sensitivity) and the interaction management factors (i.e., privacy protection and social presence). The findings provide an integrated understanding of the formation of Internet privacy concern.
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Appendix
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Footnotes
1
In this paper, the term “antecedents” is used interchangeably with the terms “drivers” and “inhibitors”.
 
2
Protection motivation theory proposes that individuals protect themselves based on their perceptions of: severity of, vulnerability to the threat, response efficacy (i.e., belief that implementing a behavioral response will reduce the threat), and self-efficacy (i.e., belief in one’s ability to perform the behavioral response) (Li 2012).
 
3
Asians are used to high-density living conditions (e.g., small homes, crowded subways, etc.) and are more tolerant of noise and crowding than Westerners (Gillis et al. 1986). Thus, Asians may be more tolerant of being closely observed by others and lower privacy (e.g., Wang and Lau 2013).
 
4
The individual dimension is an extension of the original self-ego dimension in the MDT. This dimension includes, in addition to an individual’s experience, other individual-related factors suggested by Westin (2003), such as individual traits and demographics. Information management and interaction management are related dimensions that describe how an individual manages his or her interpersonal interaction with others.
 
5
We also conducted a focus group discussion with seven Internet users to confirm the relevance of the selected factors.
 
6
In the U.S., some legislations, including the Privacy Act (1974), the Computer Matching and Privacy Act (1988), and the Telecommunications Act (1996), were introduced to restrict the collection, use, and dissemination of personal information. In Europe, the Council of Europe passed stricter rules that protect personal data from both the private and public sectors. In Asia, for example, Hong Kong has implemented privacy laws that are similar to that in Europe.
 
7
We compared the demographics of our sample to the government census data of 2016 on Hong Kong’s population. There was no significant difference in terms of gender (Chi-square, p>0.05), but our sample was relatively younger and more educated, and had lower income than the population average (Chi-square, p<0.05). Nevertheless, our sample was closely representative of the active adult Internet users in Hong Kong, who were aged between 25 and 44. 99% of users in this age group accessed the Internet every day (vs. the global median at 29%) (Statista 2016).
 
8
In the first round of analysis, we controlled for the effects of gender, age, Internet experience, and weekly Internet usage on IPC, and found that none of the control variables was significant. Also, we conducted a series of split-group analyses based on these control variables and did not find any difference across subgroups. Thus, we proceeded to test the model with the main constructs only. Further, to alleviate the concern with common method bias (CMB), we employed the marker variable technique to validate our results. Following Malhotra et al. (2006), we used the smallest positive correlation among the latent constructs (i.e., 0.01) as an estimate of common method bias to produce a CMB-adjusted correlation matrix and re-estimate the path coefficients. The results showed that the CMB-adjusted path coefficients were consistent with those without the CMB adjustment. Hence, CMB was not deemed a threat to our results.
 
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Metadata
Title
Drivers and Inhibitors of Internet Privacy Concern: A Multidimensional Development Theory Perspective
Authors
Weiyin Hong
Frank K. Y. Chan
James Y. L. Thong
Publication date
17-06-2019
Publisher
Springer Netherlands
Published in
Journal of Business Ethics / Issue 3/2021
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-019-04237-1

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